Iraq: Upturn in Baghdad

In Iraq, where politics are seldom clear-cut, recent visitors have been impressed with a change of mood. Thirty months ago, Westerners were being taunted in the streets of Baghdad; today they are more welcome than in most other Middle East capitals.

Shops once again are crammed with British goods, which until recently were all but barred by government policies. West Germans, Austrians, Swiss and Lebanese are back in force building bridges and ports. To stimulate the long-stalled economy, the government announced that 70% of all oil revenues, which have been largely diverted to...

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